DoD's $2.5B Electric Power Contract Awarded to CAITKLAIRE ENERGY SYSTEMS CORP for Grid Resilience

Contract Overview

Contract Amount: $2,549,716 ($2.5M)

Contractor: Caitklaire Energy Systems Corp

Awarding Agency: Department of Defense

Start Date: 2025-10-06

End Date: 2027-12-17

Contract Duration: 802 days

Daily Burn Rate: $3.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 8511643078!ELECTRIC POWER RESILIENCY BUI

Place of Performance

Location: TRACY, SAN JOAQUIN County, CALIFORNIA, 95304

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $2.5 million to CAITKLAIRE ENERGY SYSTEMS CORP for work described as: 8511643078!ELECTRIC POWER RESILIENCY BUI Key points: 1. Contract value of $2.5 billion over its period of performance. 2. Awarded under full and open competition after exclusion of sources, indicating a specific justification for the procurement approach. 3. The contract is a definitive contract with a firm-fixed-price type, suggesting clear cost expectations. 4. Performance period spans over 3 years, from October 2025 to December 2027. 5. The contractor, CAITKLAIRE ENERGY SYSTEMS CORP, is positioned to deliver critical infrastructure services. 6. The North American Industry Classification System (NAICS) code 238210 points to electrical contractors and wiring installation. 7. The contract is managed by the Defense Logistics Agency (DLA) within the Department of Defense (DoD).

Value Assessment

Rating: fair

The contract value of $2.5 billion is substantial, reflecting the scale of electric power resiliency projects. Benchmarking this against similar large-scale infrastructure projects within the DoD or other federal agencies would be necessary for a precise value-for-money assessment. The firm-fixed-price structure aims to control costs, but the absence of detailed cost breakdowns or comparisons to market rates for specific services makes a definitive value judgment challenging without further analysis. The number of bids received (7) provides some indication of market interest, but the 'exclusion of sources' clause warrants closer examination.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific procurement method suggests that while the competition was intended to be open, certain sources were excluded, likely due to specific technical requirements, security considerations, or prior performance issues. Seven bids were received, indicating a degree of market interest, but the exclusion clause limits the scope of competition compared to a truly unrestricted full and open process. The implications for price discovery are mixed; while multiple bidders competed, the exclusion may have narrowed the field of competitive pricing.

Taxpayer Impact: The exclusion of sources, even with multiple bidders, could potentially limit the most competitive pricing available to taxpayers. However, the firm-fixed-price nature aims to provide cost certainty.

Public Impact

The primary beneficiaries are the Department of Defense and its various installations, which will receive enhanced electric power resiliency. Services delivered include electrical contracting and wiring installation, crucial for maintaining operational capabilities. The contract has a geographic focus on California (ST: CA), indicating a specific regional need for these services. Workforce implications may include job creation for electricians, technicians, and project managers within the construction and energy sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause requires careful scrutiny to ensure it was justified and did not unduly restrict competition.
The large contract value necessitates robust oversight to prevent cost overruns or performance issues.
Dependence on a single contractor for such a critical infrastructure component could pose a risk if performance falters.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Receiving 7 bids suggests significant market interest and a competitive environment, despite the exclusion clause.
The contract duration of over 3 years allows for sustained focus on critical infrastructure improvements.

Sector Analysis

The electric power infrastructure sector is critical for national security and economic stability. This contract falls within the construction and electrical services sub-sector, specifically focusing on grid modernization and resilience. The market for such services is substantial, driven by aging infrastructure, increasing demand, and the need to withstand environmental and security threats. Comparable spending benchmarks would involve analyzing other large-scale federal or utility-led grid modernization projects, which often run into billions of dollars.

Small Business Impact

This contract does not appear to have a small business set-aside (SB: false). There is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary awardee is expected to handle the majority of the work, and opportunities for small businesses may be limited unless they are direct subcontractors to CAITKLAIRE ENERGY SYSTEMS CORP. Further review of the contract's subcontracting plan, if any, would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA), a key procurement arm of the DoD. Accountability measures will be embedded within the contract's performance standards and reporting requirements. Transparency will depend on the DoD's public disclosure policies regarding contract performance and any associated Inspector General (IG) reports. The IG's office for the DoD would have jurisdiction over investigations into fraud, waste, or abuse related to this contract.

Related Government Programs

DoD Energy Resilience Programs
Military Construction Projects
Federal Grid Modernization Initiatives
Defense Logistics Agency Procurement

Risk Flags

Potential for limited competition due to source exclusion.
Large contract value requires stringent oversight.
Contractor's past performance needs verification.
Dependence on a single contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.5 million to CAITKLAIRE ENERGY SYSTEMS CORP. 8511643078!ELECTRIC POWER RESILIENCY BUI

Who is the contractor on this award?

The obligated recipient is CAITKLAIRE ENERGY SYSTEMS CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2025-10-06. End: 2027-12-17.

What is the specific justification for excluding certain sources in this 'full and open competition after exclusion of sources' award?

The justification for excluding specific sources under this procurement method typically relates to stringent technical requirements, specialized capabilities, security clearances, or past performance issues that only a subset of potential contractors can meet. For a contract valued at $2.5 billion for electric power resiliency, the excluded sources might have lacked the necessary expertise in advanced grid technologies, specific security protocols required by DoD installations, or the capacity to manage projects of this magnitude. The Defense Logistics Agency (DLA) would have documented this justification, likely requiring approval from higher authorities within the DoD to ensure fairness and necessity. Without access to the specific documentation, it's presumed that the exclusion was deemed essential for achieving the project's critical objectives and ensuring national security.

How does the $2.5 billion contract value compare to historical spending on similar electric power resiliency projects by the DoD or other federal agencies?

A contract of $2.5 billion for electric power resiliency is a significant investment, placing it among the larger infrastructure projects undertaken by the federal government. Historically, the DoD has allocated substantial funds towards modernizing its infrastructure, including power systems, to ensure operational continuity. For instance, various initiatives aimed at hardening critical infrastructure against cyber threats, physical attacks, and natural disasters have seen multi-billion dollar commitments over several years. Comparing this specific contract's value requires analyzing the scope, duration, and specific technologies involved in other projects. For example, projects focused on microgrid development, renewable energy integration, and grid hardening across multiple bases could collectively reach or exceed this figure. Without granular data on comparable projects' specific line items and objectives, it's challenging to provide an exact benchmark, but the scale suggests a strategic, high-priority investment in grid resilience.

What are the key performance indicators (KPIs) and risk mitigation strategies associated with this contract?

Key performance indicators (KPIs) for this contract would likely focus on the successful installation and integration of resilient electric power systems, adherence to project timelines, compliance with stringent DoD security and operational standards, and the overall reliability and uptime of the upgraded infrastructure. Risk mitigation strategies would be multifaceted. Given the firm-fixed-price nature, cost overruns are a primary risk, mitigated by detailed SOWs and rigorous oversight. Performance risks are addressed through phased delivery, milestone payments tied to successful completion, and potential penalties for delays or failures. Technical risks related to new technologies would be managed through thorough testing, validation, and potentially requiring contractor expertise in specific advanced systems. Security risks are paramount for DoD installations, necessitating strict vetting of personnel and adherence to cybersecurity protocols. The 'exclusion of sources' might also be a risk mitigation strategy if it ensures only highly qualified and vetted entities participate.

What is the track record of CAITKLAIRE ENERGY SYSTEMS CORP in executing large-scale federal infrastructure contracts, particularly within the defense sector?

Assessing the track record of CAITKLAIRE ENERGY SYSTEMS CORP is crucial for understanding their capability to manage a $2.5 billion contract. Information regarding their past performance on federal contracts, especially those of similar scale and complexity within the defense sector, would be publicly available through sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). A review would focus on their history of on-time delivery, budget adherence, quality of work, and any instances of disputes or contract terminations. If CAITKLAIRE ENERGY SYSTEMS CORP has a documented history of successful execution of large, complex electrical infrastructure projects for government entities, it would significantly de-risk this award. Conversely, any negative performance indicators would raise concerns about their capacity to fulfill this critical contract effectively.

What are the potential long-term implications of this contract on the energy infrastructure at DoD facilities in California?

This contract is poised to significantly enhance the energy infrastructure at DoD facilities in California by improving their resilience. This likely involves upgrading existing power systems, potentially integrating renewable energy sources, and implementing advanced grid management technologies to ensure continuous power supply even during disruptions like natural disasters (e.g., earthquakes, wildfires) or cyberattacks. The long-term implications include increased operational readiness for military forces stationed in the region, reduced vulnerability to power outages that could compromise critical missions, and potentially lower long-term energy costs through efficiency improvements and the use of more sustainable energy sources. Furthermore, it could serve as a model for other DoD installations facing similar infrastructure challenges, contributing to a broader national strategy for energy security and resilience.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Electrical Contractors and Other Wiring Installation Contractors

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: SP330025B0006

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 850 PETROL RD, BAKERSFIELD, CA, 93308

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,549,716

Exercised Options: $2,549,716

Current Obligation: $2,549,716

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline